5 Top considerations when choosing a new warehouse location

Choosing the right warehouse location is a task that requires extensive research and planning. It can have a huge impact in how efficient, profitable and competitive a business is. When making that decision, carefully consider your needs and priorities and assess the right environment for your business.

We have listed the five main concerns a company must consider when shopping for a new warehouse:


1. Where you currently operate

You new facility should be as close as possible to your major suppliers, producers, and/or clientele. Particularly if you operate an e-commerce channel that offers next or same day delivery. Proximity to your suppliers and customers will reduce shipping time and costs, whist enhancing client satisfaction.


2. Distribution and transportation

Prompt delivery can make or break a retail business, especially during peak seasons. Consider the location’s access to main roads and motorways, as well as local traffic density, especially if trucking is the main mode of transportation.


3. Labour availability

Ideally, you want to find a location that has abundant available workforce with the right skills.

Consider the local job market supply and demand as it affects salaries and ultimately operating costs: low labour availability and high demand drives salaries up. High labour availability and low demand drives salaries down.

Finding staff with the right experience is also critical. A skill gap can result in lower performance and productivity.


4. Size and capacity

Does the warehouse offer enough storage space? You need to find the right balance between too little and too big. Keep in mind that although you don’t want to pay for empty shelves, you will need plenty of space around stored items to manoeuvre products.

Furthermore, you need to consider the impact future growth will have in your storage capacity. Will your warehouse need extra space if your business grows?


5. Facility management

Now that you have found the ideal location, and your facility is being built, you need to focus on the technology that will work at the core of your warehouse, streamlining its daily operations and ensuring better productivity.

Warehouse automation can be achieved by implementing a Warehouse Management System. This technology can dramatically improve productivity, shrink order turnaround windows, and maximize throughput and capacity ultimately slashing operating costs.

 Simply put, a warehouse management system (WMS) is a software solution designed to support and optimise the daily operations of a warehouse. A WMS can provide real-time operational visibility and control. It will help with planning and managing inventory, leading to up to 99+ percent accuracy. It will also optimise storage systems to ensure no space in your brand new warehouse is wasted!

About iWMS Australasia

No matter your business size, having a warehouse management system will benefit you. With the HighJump platform, iWMS Australasia can offer your business a tailored, configurable and scalable solution that will meet your exact business needs today and for years to come.  Contact us now.